Words of Caution About Farm Succession
Written by Scott Wagendorf based on an interview with Alex Vasichek, Financial Planner
Planning has been the backbone of successful farming operations for decades. It transforms a high-risk activity into one that is more predictable, manageable and sustainable over the life of the farm—across multiple generations.
But the opposite is also true. A lack of planning can be costly. Imagine building a legacy for generations before being forced to carve up land and machinery among heirs who have little or no interest in farming. Even if one sibling chooses to remain on the farm, the others will likely cause the estate to be sold off.
Truth & Consequences
While renting may seem like a viable default option that keeps all parties happy, consider this: Depending on the farmable land’s location and soil quality, an heir in Cass County, ND might earn an average of $129 an acre renting vs a one-time sale price of $4,549 per acre (according to a 2024 Five-Year Average survey conducted by the North Dakota Department of Trust Lands).
In other words, it would take roughly 35 years to recover the sales price. That’s 35 years the non-farming heirs would have no access to the remittance while the heir/s who chose to continue farming would be able to derive maximum value and benefit during that time.
It would take roughly 35 years to recover the sales price
“…you could risk losing your roots and relationships… literally figuratively
Always Refinancing. Never Catching Up.
Another fallback solution might involve a multi-year payment structure between the original estate owner and the new “tenant.” But what happens if the new farmer falls behind and seems to continually refinance, with no end in sight?
Interest builds up….along with emotions. In many cases, he or she can no longer make payments and the risk falls back to parents who have to step in. Even when all parties have the best intentions, weather and market fluctuations can cause the situation to spiral out of control.
“These situations and the land owners who face them are not simply unlucky,” says Alex Vasichek, Agricultural-Focused Financial Planner at Elevate Financial. “It happens all the time. But it can be avoided. This is the time to fall back on common sense and expertise. Otherwise you could risk losing your roots and relationships…literally and figuratively.”
Top 3 Tips for Effective Planning
While every farm family represents a unique set of challenges that require customized solutions to succession planning, it’s important to bring together a team of advisors who are not strangers to the ins and outs of agricultural-based small businesses.
1 Assemble an Advisory Team
Work with professionals like CPAs, attorneys, and advisors who have specific agricultural expertise to guide the process and ensure legal and financial soundness.
2 Involve All Family Members
Ensure all family members, both farming and non-farming, are informed about estate planning decisions. However when it comes to succession planning, it may be necessary to limit discussions to just the heirs who will continue farming.
3 Start Early
Begin the planning process as early as possible, ideally 5-7 years before the land owners/parents’ retirement, to allow ample time for succession and training.
Final Advice
When family members acknowledge that they may have different goals- and focus on finding common values-they’ll be on the way to bridging differences and improving communication throughout the planning process.
Alex Vasichek
Agricultural Focused Financial Planner
Best-In-State Top Financial Security Professionals – Forbes 2025
Representatives do not provide tax and/or legal advice. Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice.
Clients should confer with their qualified legal, tax and accounting advisors as appropriate. Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. www.SIPC.org on Alex Vasichek is a registered representative of and offers securities through MML Investors Services, LLC. Member SIPC. Elevate Financial is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. OSJ: 100 South Fifth Street
Suite 2300 Minneapolis MN 55402.
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